China consumer

Following Bellamy’s 43% one-day fall earlier this month, it’s worth revisiting comments recently made by our Managing Director, Charles Leyland, in an interview with Livewire: “It was faddish, it’s come off a bit. We saw after the dot-com boom that stocks that fell in half, they kept falling. If you...
Show More

Back on August 25th, we looked at the "increasing risks for the Chinese growth stocks" after they had suffered some significant declines. Investors who had entered the larger names, Blackmore's and Bellamy's earlier in the year, were losing money compared to the ASX200, which was mildly ahead. Chasing easy fast...
Show More

Chris Stott, Chief Investment Officer at Wilson Asset Management, thinks the Australian market is fairly priced at its current PE of around 15-16 times - slightly above the long-term average. With rate hikes due in the US opening the possibility of a short-term correction, plus the expectation of further rate...
Show More

Blackmores {120.76 4.19 3.47%} went ex-dividend today $2.10 & traded to a low of $112.53 -$4.04 or -3.4%, but then bounced immediately (in fact all the way back to $118.48 +$5.95 or +5.3% … But then came off its high in arvo. That move is telling you the buyers are...
Show More

Yesterday, one of the markets favourite stocks of the last 18 months, Blackmore's (BKL) literally fell off a cliff, collapsing almost 20% in the one day. In this reporting season, we have witnessed a few examples of "growth stocks" that are trading at very expensive valuations, being hammered when their...
Show More

Kevin Bertoli, Asian Equities Portfolio Manager at PM CAPITAL, says that fixed asset investment is the story of last decade in China. “China has had three years of consecutive year on year declines in manufacturing prices. Basically, it’s telling you that there’s too much capacity in the system. That’s telling...
Show More

While the Australian bourse has continued to sink lower, ASX-listed companies with exposure to the Chinese consumer have seen their share prices skyrocket as their earnings are boosted by sales to China. Blackmores and Bellamy's are two significant beneficiaries of the popularity of Australian-made wares. Their share prices have surged,...
Show More

China’s consumer economy is projected to expand by about half, to $6.5 trillion, by 2020—even if annual real GDP growth cools to 5.5%, below the official target. The incremental growth of $2.3 trillion alone over the next five years would be comparable to adding a consumer market 1.3 times larger...
Show More